Analysis: ‘Real victims will be millions of old people who rely on the post to keep in touch’

THE price of stamps is probably not going to be the biggest call on any household budget.

With all the other pressures on cash-strapped consumers, how much does it matter in the grand scheme of things, that the price of a stamp is going to rise by 14p? Well, it does matter. For many people in Scotland the cost of a thank-you letter or a birthday card will just have got too expensive. And if buy a book of 12 first-class stamps now, that will cost you £7.20.

That’s why it is important to bear in mind that stamp prices are not just ways to keep the Royal Mail business running smoothly. People have to pay for these products and services and there does come a point when the cost just becomes too much. Asking people to put their hand back in their pocket when they may only have a few pounds left at the end of the week is a big ask.

The age of texts, e-mail and Facebook might make this less of an issue for the people who have already embraced electronic modes of communication. But there are millions of others, especially older people, who value the more traditional ways of keeping in touch and like to send letters and cards. Many businesses also rely on this crucial method of correspondence. There are also many who are not on or not comfortable with the internet.

These consumers often cannot pay their bills or manage their lives electronically. They have no choice about whether they use the post or not. These are the ones who will feel yesterday’s decision the hardest. But it is a harsh truth that the business of collecting, sorting and delivering letters and parcels has changed. We send far fewer letters than we did only a few years ago.

Some price rise was to be expected. It may even have been necessary. But consumers pay for this service and they will expect Royal Mail to deliver nothing short of excellent value for money and to make its business more efficient before it considers raising prices again.

If we can give any advice it would be post a few days early and post 2nd class as the price for this still remains capped. Ofcom has said that from now on, Royal Mail is free to set its own price for first-class mail. Not surprisingly, they have been quick to take them up on that new freedom. But removing the price caps on stamps is not the same as a licence to print money. Royal Mail will need to show that price rises are the last option, not the first thought. If they don’t, consumers will expect Ofcom to take that freedom away.

• Trisha McAuley is deputy director of Scotland’s consumer watchdog, Consumer Focus Scotland.